The overall employment rate in the country reached 96.5 percent in 2024, jumping from 94.1 percent in 2022, with the total number of employed persons recording a 28.7 percent growth, rising from 287,785 in 2022 to 370,479 in 2024.
However, this masks urban unemployment and gender inequality issues
Yangyel Lhaden
The overall employment rate in the country reached 96.5 percent in 2024, jumping from 94.1 percent in 2022, with the total number of employed persons recording a 28.7 percent growth, rising from 287,785 in 2022 to 370,479 in 2024.
While this indicates a positive sign of more people finding jobs in the economy, challenges such as urban unemployment, gender disparities, and youth joblessness, continue to shape the labour market.
Despite the increase in job absorption, urban unemployment remains more than twice as high as in rural areas. The urban unemployment rate stands at 5.7 percent against 2.3 percent in rural regions.
Thimphu, the economic hub of the country, has the highest unemployment rate of 5.9 percent, followed by Sarpang at 4.8 percent, Paro at 4.6 percent, and Chukha at 4.5 percent. In contrast, Trashiyangtse and Dagana boast near-total employment rates of 98.7 percent.
Trashiyangtse and Dagana have the lowest unemployment rate of 1.3 percent each followed closely by Zhemgang and Trashigang at 1.4 percent.
The country’s workforce has also been evolving. Agriculture, once the dominant employer, now accounts for 41.7 percent of jobs, overtaken by the service sector, which employs 42 percent of the workforce.
In 2022, 43.5 percent of employed individuals were in agriculture, but by 2024, that figure had dropped to 41.7 percent. The service sector has grown employing 42 percent of the workforce.
The industry sector, however, remains the smallest, employing only 16.3 percent of workers.
In terms of job types, the number of regular paid employees slightly decreased from 34.6 percent in 2022 to 33.8 percent in 2024. Conversely, family workers in agriculture made up 21.7 percent of employed persons in 2024, while 19.3 percent were self-employed in the agricultural sector.
While the youth unemployment rate has decreased from 28.6 percent in 2022 to 19 percent in 2024, it continues to be a pressing concern for the country’s labor market.
The long-term unemployment, defined as those remaining jobless for extended periods, was recorded at 0.7 percent in 2024, slightly down from one percent in 2022. However, long-term unemployment disproportionately affects women. In 2024, 0.9 percent of women experienced prolonged joblessness compared to 0.5 percent of men.
While overall unemployment has decreased, women continue to face greater barriers in the workforce. In 2024, the unemployment rate for women stood at 4.3 percent, compared to 2.9 percent for men. Further, women make up 61.9 percent of the economically inactive population.
Education levels among employed persons also highlight disparities.
Only 9.9 percent of employed individuals hold a bachelor’s degree or higher, slightly up from 8.8 percent in 2022. Meanwhile, a significant proportion of the workforce—33.9 percent in 2024—lacks any formal qualifications.
